For an oligopoly,a few firms cannot dominate in the long run unless
A)A cartel is formed.
B)A firm has a high concentration ratio.
C)Barriers to entry exist.
D)The market is contestable.

Question

Quizplus · Accepted Answer

Barriers to entry are crucial for a few firms to dominate in an oligopoly in the long run, as they prevent new competitors from entering the market and challenging the established firms' market power.

For an Oligopoly,a Few Firms Cannot Dominate in the Long